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Another Push for CPI-E

The potential for use of a measurement more reflective of senior spending patterns has been under investigation for some time, and is the subject of pending legislation to adopt this senior-friendly tool. A recent post on by Paul Mulholland explores this subject and offers conjecture on why its adoption is delayed. Read his post here.

Ed.Note: The Consumer Price Index for Americans 62 years of age and older, known as CPI-E, is a research price index designed to measure price changes using the spending patterns of older Americans. Under its current data collection, CPI-E uses data from the CPI-U calculation based on the subset of survey respondents with a household member over age 62. The prices collected are not based solely on data statistically significant to the over-aged 62 population, such as which items, where the items are purchased, and the impact of senior discounts on the pricing of these items. Before CPI-E can be used to calculate the COLA, it is felt that the Department of Labor must improve its collection methods for this index.

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